Question 1
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Refer to Figure 16.2. The marginal damage cost imposed as a result of producing automobiles is
◦ $5.00 per car.
◦ $10.00 per car.
◦ $15.00 per car.
◦ indeterminate from this information.
Question 2
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Refer to Figure 16.2. To force this firm to produce the efficient level of output, the government should impose a tax of
◦ $5.00 per car.
◦ $10.00 per car.
◦ $15.00 per car.
◦ an amount that is indeterminate from this information.
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